This week we are setting up your company structure and making it official and getting your business registered – this is it – this is when it all gets real!
In both Canada and the United States you have a few options to set up your company structure so we’re going to do broad strokes here to give you on overview and you can dig deeper for your particular region.
We'll talk through the types of company structures as well as other registrations, permits and licenses you may need, and how to get them.
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Welcome back to SHEcorporated ONE STEP Empire podcast!
Last week we got your plan down on paper and really laid out the structure, timeline and budget for your new business with your business plan.
This week we are setting up your company structure and making it official and getting your business registered – this is it – this is when it all gets real!
In both Canada and the United States you have a few options to set up your company structure so we’re going to do broad strokes here to give you on overview and you can dig deeper for your particular region.
There are three main types of businesses:
Sole Proprietorship – the simplest to set up, however, there is no distinction between the business and the owner. Taxes are filed as one, and you are personally liable for all debts incurred. If you choose to start with a Sole Proprietorship, and you are not using your own name as the business name, you will likely be required to register the name you choose.
In order to complete this step, you will need to have chosen your business name, and if required in your area, you need to have gotten it registered.
To register your business name:
The process for this varies in each state or province so it’s best to do quick internet search for “Register my business name in whatever state or province you are in, to find links to help. Every state and province has it’s own organization that exists to help new business get registered, and find resources, if you can't find yours online, start with your local chamber of commerce, and they can point you in the right direction.
Partnership – Similar to a proprietorship, but when two or more parties are involved, and share in the company profits, loss and risk.
Corporation – an independent legal entity that exists separately from the people that own and manage it. Owners are considered shareholders. A corporation limits shareholders liability by separating their personal affairs from that of the corporation, legally. There are more requirements for maintaining a corporation, that may incur some expense. As your company grows you will hit a point when you definitely want to move to incorporating, but whether you do that right from the start or not will depend on your budget more than anything else.
In the United States there are several options for incorporating so a good place to start is the www.sba.gov
This is one step where you will be best advised by an attorney or accountant familiar with your local laws, who can advise you on the best fit for your business.
After you have decided on your company structure you will need to register for a state/provincial tax ID and a federal Tax ID: in the US you can find all the links at the www.sba.gov and in Canada start at https://www.canada.ca/en/services/business/start.html
After you are all registered you can get your business license: Contact your city authority to get a business license and ensure you are meeting all requirements and zoning bylaws.
Depending on the nature of the business, you may need the following permits, licenses, or regulations:
- Permits needed for regulated businesses (aviation, agriculture, alcohol, etc.)
- Sales tax license or permit
- Home-based business permits
- City and county business permits or licenses
- Zoning permit
- Seller’s permit
- Health department permits (such as for a restaurant)
- Employer IDs and Insurance
There may be other regulations specific to your area, so it’s always a good idea to contact your local Chamber of Commerce or Small Business Association, to find out what other registrations may be required in your region.
So that’s your one step for this week. It’s a pretty exciting one too. Get your company officially registered and ready to do business!
Next week we are going to start building your online ecosystem to grow your audience and show your new business to the world.
So make sure you subscribe if you haven’t already and drop us a rating or a comment and hit us up @shecorporated on social and we’ll see you back here next week.